Can I Start A New Company If I Go Into Liquidation?
Yes, you can start a new company and there is no restriction in which areas of business you may trade in, so it is possible to start a new company in exactly the same line as the one that has gone into liquidation.
There are certain things that you should be aware of, that you may wish to take into consideration.
It is an offence, under Section 216 of the Insolvency Act 1986, to re-use the same or similar name of the company that went into liquidation. if you are a director of both the company that went into liquidation and of the new company that has just been formed.
There are exceptions to this rule and if you wish to use the same or similar name for a new company, you should take advice from either a solicitor or an insolvency practitioner in relation to the restrictions.
Some suppliers may not be too keen to grant you lines of credit, especially if they were creditors in a previous insolvency that you were involved with.
Frequently, this will mean that you will either have to pay up front for goods, or, may be given restricted credit terms if you need to trade with the same companies.
It may be more difficult to obtain items on finance, such as hire purchase or lease, because a new company has very little in the way of a track record and this could result in you having to sign personal guarantees or lodge some form of security if requested to do so.